Item - 2021.GL22.2

The General Government and Licensing Committee recommend that:

1. City Council approve that business licensees be given a further 60 days (150 days in total), with no late fees assessed, in which to pay their 2021 licence fee, and authorize the required by-law amendments.

This report responds to Council's direction to report on an application-based Municipal Licensing and Standards business licence deferral program, with deferral applications assessed on COVID-19 related financial hardship and an inability to pay, and modeled on the City's 2020 application-based property tax deferral program.

As part of the application-based property tax deferral program, those experiencing financial hardship as a result of COVID-19 are able to apply for property tax deferral.  In reviewing financial impacts across business licence renewal categories it was evident that COVID-19 related financial impacts were generally experienced within the following three licence categories in various degrees:

1.  Group A – Business forced to fully or partially shut down as deemed non-essential

 
2.  Group B – Business permitted to operate but is adversely impacted due to other shutdowns

 
3.  Group C – Business permitted to operate and not otherwise affected by shutdowns (aside from added operating expenses)

As such, staff are not recommending an application based program given the level of additional City resources that would be needed to facilitate application reviews, coupled with the submission requirements that businesses would be responsible for providing, as opposed to a universal program that reflects the financial impacts generally experienced within each of the above business licence categories.

To provide added support to Toronto businesses impacted by the pandemic, it is recommended that an added 60 day deferral be granted for all business licence renewals.  Under current bylaws an unpaid licence is cancelled after 90 days.  This recommended adjustment will now provide for up to 150 days for payment after the renewal date, without cancellation or any application of late fees as detailed below:

- Current Payment Period – up to 90 days (prior to cancellation or late fees)

- Recommended Adjustment – up to 60 added days

- Total Recommended Payment Period – up to 150 days (prior to cancellation with no late fees)

This is in addition to measures approved as part of the 2021 Operating Budget where Council has developed the CafeTO program to provide assistance to bars and restaurants; Council adopted measures to assist the taxi and limo industry (50 percent reduction in fees and 75 percent reduction in regulatory charges and vehicle age extensions); and all other licensing fees were frozen at 2020 levels.

The Province of Ontario also provides further supports for business including small business support grants of $10,000 to $20,000 per year over 2020 and 2021 for eligible businesses; Ontario's Main Street Relief Grant to provide support of up to $1,000 for unexpected Personal Protective Equipment costs; the COVID-19 Energy Assistance Program for Small Business providing support to pay for energy bills; pension contribution deferral and extension for eligible businesses; and a pause on commercial rent evictions.